Commission's Report Recommendation No. / Category

Commission's Recommendations
and USDA's Action Plans

USDA Mission Area/ Agency/Contact Person

USDA Action. Historically, NASS has estimated the value of sales as part of its ongoing statistical program. In 1997, the Census of Agriculture was transferred from the Bureau of the Census to NASS which will provide an additional tool to estimate value of sales and accompanying data. 

Data were collected for the 1997 survey and published in February 1999. Information on market value of agricultural products sold was published both at the State and U.S. level.

Status: NASS plans to address issues expressed in the Commission’s recommendation through its ongoing statistical program.

The RMA educational initiative must document the number and type of small farmers and ranchers it has reached; the products developed specially for small farmers and ranchers as a result of risk management; and provide producers with more information about risk management, production practices, marketing techniques, and processing options.

USDA Action. Risk Management Education and Outreach plans detail specific steps to take to provide educational information about sustainable agriculture practices as a means of managing risk and to develop strategies to give producers more information about risk management.

Status. Ongoing through FY 2000. Processing options.

USDA Action. RMA reviewed several areas of the crop insurance program which can be modified to enhance the coverage available to producers, reduce the impact of extended areas of adverse weather, and assist producers in obtaining coverage for crops which they are growing in response to the 1996 Farm Bill. 

On August 12, 1998, the Secretary announced several improvements to the crop insurance program that will provide producers in ND, SD, MN, and MT more crop insurance protection. The initiatives were approved by the Federal Crop Insurance Corporation (FCIC) Board of Directors. 

To achieve its principles for strengthening the farm "safety net" by improving crop insurance, the Administration offered several preliminary proposals in February, 1999: 

1. Raise the floor-Because CAT and NAP programs only cover less than one-third of the value of a crop, crop insurance reform legislation should increase both the amount of the crop covered and the market price at which a crop is insured thus making these basic programs more financially worthwhile.

2. Increase incentives for higher level coverage--crop insurance reform should improve the incentives for farmers to buy more comprehensive insurance at higher buy-up levels. It should also provide farmers similar incentives for all insurance plans, including revenue insurance. 

To strengthen the farm safety net, the Risk Management Agency (RMA) lowered crop insurance premiums in January 1999 and again beginning November, 1, 1999, for the 2000 crop year. 

RMA has been responsive to the Commission’s recommendations by encouraging farmers to obtain a one-year premium discount of up to 30 percent (25 percent discount for 2000 crop year) which will allow them to increase their coverage for a small additional fee. This opportunity was widely publicized.

3. Another preliminary proposal related to Noninsured Crop Disasters Assistance Program (NAP), Improve the NAP Program. Currently, many farmers rely on the NAP program as their primary protection from losses from natural disasters. 

Crop insurance reform should change the trigger that makes NAP eligible for NAP assistance at the same time USDA designates areas natural disaster areas that makes farmers and ranchers eligible for emergency loans.

Status. Crop Insurance Reform proposals to Congress are still under review as of 12/99. 

USDA Action. On September 23, 1998, Secretary Glickman announced an innovative new insurance pilot program called Adjusted Gross Revenue (AGR) that will guarantee that producers receive a percentage of their gross farm revenue from the sale of their agricultural commodities. 

Beginning with the 1999 crop year RMA launched the Whole farm or AGR program in 5 states — Florida, Michigan, New Hampshire, Massachusetts, and Maine and beginning with the 2000 crop year–AGR will also be available in Connecticut, Idaho, Oregon, Rhode Island and Vermont (10 States total). 

RMA also extended the sales closing date for the AGR for the 2000 crop year to give producers additional time to take advantage of the premium discount of 25 percent offered as part of the disaster relief legislation.

Status. Completed. Will continue to monitor.

USDA Action. Nursery Products - On October 23, 1998, Secretary Glickman announced improvements to the crop insurance program that covers growers of nursery crops. 

The improvements beginning with the 1999 crop year to the nursery crop insurance program include providing coverage to both container-grown and field-grown plants. Formerly, only container-grown plants were eligible. 

Under the old plan, growers had to submit monthly inventories; now they only have to declare the amount of insurance needed when they apply for the coverage. 

Also, under the old plan, growers paid a full year's premium based on their highest level of inventory, even when the increase was temporary. 

Now, growers can buy peak coverage only when needed, and their annual premium is not based on a temporary inventory. Producers buying a nursery policy for the first time had until May 31, 1999, to obtain coverage. 

Christmas trees -RMA is not pursuing an insurance program since a company provides insurance. IGF Insurance Company provides coverage for christmas trees in a "Timberplus" Policy in 26 states.

Status: Completed. Will continue to monitor.

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